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First Majestic Silver Corp C.AG.UN


Primary Symbol: T.AG Alternate Symbol(s):  AG

First Majestic Silver Corp. is a mining company. It is focused on silver and gold production in Mexico and the United States. It owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine, and a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, United States. It also owns and operates its own minting facility, First Mint, LLC, and offers a portion of its silver production for sale to the public. The San Dimas Silver/Gold Mine is located over 130 kilometers (km) northwest of the city of Durango, Durango State, Mexico and consists of 71,868 hectares of mining claims located in the states of Durango and Sinaloa, Mexico. The Santa Elena Silver/Gold Mine is located over 150 km northeast of the city of Hermosillo, Sonora, Mexico. The La Encantada Silver Mine is an underground mine located in the northern Mexico State of Coahuila, 708 km northeast of Torreon.


TSX:AG - Post by User

Bullboard Posts
Comment by HCI_STEELon May 11, 2011 6:37pm
345 Views
Post# 18562590

RE: I still Predict a Buyout: $2.60 per share

RE: I still Predict a Buyout: $2.60 per shareI'd disagree on a buyout at $2.60 or anywhere near that if they could cobble a deal. Unitholders are under the gun to accept a lowball offer because if the debs can't be paid off the unitholders can expect their unit price to plunge as they would hold ~ 1/3 of what they currently hold. They'd be issuing at least ~60 Million units to settle the debs so that takes OS units from ~30M to 90M. Probably much higher than even that since once they confirm paying off the debs with units the unit price will plunge meaning even more units have to be issued. That will be followed by a reverse split sometime down the road.

I thought about holding my debs to the end since I've held them for +5years but the upside isn't worth the risk. I will however consider buying units once the debs are paid off in units because there will be many former deb holders that don't want units and that will drive the price down even more.

The company kind of has a gun to its head with any takeover offer because it will have to pay ~90M in debs, enough to cover the loans, and still satisfy unitholders. Too many interests and not enough time.

I do wonder why they have rushed to settle so many suits etc but either way they need to clear those up just to move forward.
Bullboard Posts